Abacus Daily Debt News

A television advertising campaign has been launched by Aviva in order to encourage younger people to consider setting up their pensions, a move which could help them avoid debt during their retirement.

The marketing initiative followed a recent survey by the organisation, which revealed that of those in their first year of retirement, 47 per cent wished they had put more away and 41 per cent regretted not starting their pensions sooner.

Head of pensions marketing for UK Life, Aviva Paul Goodwin remarked that it is an acknowledged problem that many are not saving enough for the time when they will not be in work.

He said: "An individual could see a huge difference in their retirement income, compared to a similar person who waits," adding that getting into the habit of saving money at an early age could help.

Last month, an online pension calculator was initiated by the Financial Services Authority and the Association of British Insurers to help people plan for their retirements.

By Sarah Adie

People have changed the way they consider their finances as a result of the recession, an industry expert has said.

According to Andrew Hagger of Moneynet.co.uk, Britons are becoming more interested in saving their money in order to prepare for emergencies or possible debts incurred through unemployment, which has risen in the downturn.

Noting that in previous years, people had not felt the need to save, Mr Hagger remarked that "[they] are now getting a bit wiser with their cash" as "there have been an awful lot more people being made unemployed".

He further observed that the credit crunch has made debtors focus their minds more financially, helped by attractive savings and fixed rates that have appeared on the market in the last six months.

His comments follow figures from the Office for National Statistics, which revealed that the saving ratio for households was 5.6 per cent for the latest quarter, up from 3.9 per cent for the previous three-month period.

By Sarah Adie

Proposed mortgage product regulations by the Financial Services Authority could do more harm than good where borrowers are concerned, the Association of Mortgage Intermediaries (AMI) has stated.

Director of the organisation Robert Sinclair noted that the structure of such rules needs to strike a balance between protecting people from unaffordable debt with their need to purchase their own homes.

According to the AMI, the suggested regulations will impose unnecessary restrictions on consumers entering the property market and intermediaries must take a hand in helping debtors decide what is affordable and which mortgages are appropriate.

"Product regulation risks strangling innovation and competition," Mr Sinclair said, adding: "Few things undermine market confidence faster than regulatory change driven by the winds of political expediency."

In other news, Peter Cowell of Click n go Mortgages emphasised the fact that borrowers are refraining from taking out certain types of mortgage because creditors are failing to reduce their fixed rates.

By Sarah Adie